Business

The Role of Incentive Marketing in the Retail Sector

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Marketing using incentives is not a new idea for business leaders to explore, but this form of marketing has become more popular and important to companies than ever before. When questioning, what is marketing using incentives? Simply look at a keychain or in your wallet to see the vast number of cards used when buying groceries or to receive cash back for making a purchase. The role of incentive marketing is changing all the time and must be targeted to individual customers and the interests big data reveals consumers are interested in.

Omnichannel marketing incentives

In the past, the marketing of a brand incentive program was simple. You will remember seeing posters in a store revealing a purchase of a specific amount would earn you a certain number of points or earn cash back for purchases made. The simple idea of targeting customers when they are in a store or visiting a website is not the only option now being explored by marketers when you are looking to develop an effective marketing campaign. There’s more to it; it is the incentive marketing agenda, and it is gaining recognition for all the good that it has to offer.

One of the most popular options being explored is the omnichannel marketing plan which has been developed by social media-savvy brands in the 21st-century. The turn to omnichannel marketing simply means you will reward customers for their interaction and loyalty with your brand, according to Marketing Land.

The omnichannel plan allows you to provide incentives for customers when they spend their time sharing details of their purchases and marketing information Online through social media platforms. Using an Omnichannel approach allows you the opportunity to provide rewards for your customers when they complete simple tasks, such as opening marketing emails from your brand.

Partnerships are becoming more important

One of the latest trends in marketing incentives has been the growth of brand partnerships designed to attract greater levels of interaction with their customers. Traditionally, marketing partnerships have focused on the development of brands who have some form of affiliation in the eyes of consumers. If you are leading the marketing team for a credit card company, it is common for a partnership with an airline to be explored by the brand.

You may be questioning why it is important to build brand partnerships makes it easier than ever to build bridges with new customers for your company. In the retail sector, a partnership with a brand not in direct competition with your company is one of the easiest ways of attracting new clients to your physical or Online store.

Premium rewards programs are increasingly important

You may be wondering how to offset the costs of the many rewards your retail store is offering to consumers. The development of fee-based incentives is moving quickly following the success of Amazon’s Prime rewards program among customers around the world. Research is continuing in the retail sector about the effectiveness of fee-based incentives with a study revealing over 60 percent of consumers surveyed would consider a fee-based program from their favorite store.

Loyalty is a two-way street

The main reasons for investigating incentives is the need to drive your customers to remain loyal to your brand when they are looking to make a purchase. Sometimes referred to as a loyalty program, these incentive-based programs require brands to fulfill their side of the incentive program. Listening to your customers and making the most of your retail sector partners includes the need to offer rewards which are appealing to your consumers. For example, if your brand has a large number of millennials as customers you may find a socially-responsible approach to incentives as having an impact on the local and global community becomes more important to your brand.

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